Hybrid Cloud Networking: Best Practices for Low Latency

Hybrid cloud networking combines public cloud services with private infrastructure, enabling businesses to securely manage data and workloads while reducing costs. Low latency - measured in milliseconds - is critical for real-time applications like video calls, IoT, and financial trading. Factors like network congestion, routing inefficiencies, and physical distances often cause delays. To reduce latency, businesses should consider direct cloud connections (e.g., AWS Direct Connect, Azure ExpressRoute), optimise routing, use edge computing, and implement caching strategies. Regular monitoring, automated scaling, and redundancy further ensure optimal performance. Compliance with UK GDPR and robust security practices are also essential for maintaining data integrity. These steps are especially important for industries like healthcare, finance, and manufacturing, where delays can have serious operational or financial consequences.

Network Connectivity Options for Low Latency

Direct Connection Services

Direct connection services create dedicated pathways between your on-premises infrastructure and cloud providers, completely bypassing the public internet. This setup ensures consistent, low-latency connections, which are crucial for high-performance hybrid cloud networks - especially for modern businesses in the UK.

Take AWS Direct Connect as an example. It offers a direct link to AWS with options like Private, Public, and Transit Virtual Interfaces (VIFs) to support Virtual Private Cloud (VPC) access, public service interaction, and multi-region connectivity [2][4]. Amazon Web Services describes it as:

AWS Direct Connect is a cloud service that links your network directly to AWS to deliver consistent, low-latency performance [4].

Similarly, Azure ExpressRoute provides Layer 2 or Layer 3 connections with Private, Microsoft, and Public Peering options, all designed to meet UK compliance requirements [2].

Meanwhile, Google Cloud Interconnect leverages Google’s global network to offer dedicated connectivity, ensuring secure and consistent bandwidth alongside better traffic control [2].

These direct connections are indispensable for industries like finance and healthcare, where even minor latency spikes can disrupt critical operations [2]. Additionally, colocation providers help by positioning data closer to cloud gateways, which further reduces latency [3].

When choosing a cloud provider, it’s vital to align the platform with your infrastructure, security, and support needs. A resilient architecture for direct cloud access can help mitigate potential performance issues tied to public internet usage [3].

Now, let’s explore how these direct connections compare with other connectivity options in terms of performance and cost.

Connection Types Comparison

While direct connections often deliver the best performance for latency-sensitive workloads, other options may be more suitable depending on your organisation’s budget and requirements. According to Flexera’s State of the Cloud report, 84% of enterprises cite managing cloud spend as a top concern [3].

MPLS (Multiprotocol Label Switching) is a strong contender for organisations prioritising consistent performance. Its dedicated circuits and traffic prioritisation ensure low latency and reliable performance across multiple locations, making it an excellent choice for businesses needing stable connections [5].

In contrast, SD-WAN (Software-Defined Wide Area Network) uses intelligent routing to optimise real-time application performance and reduce latency. However, its effectiveness depends heavily on the quality of the underlying internet connection. SD-WAN’s popularity is on the rise, with the market expected to grow at a compound annual growth rate of 10.72% from 2024 to 2031, as organisations look for more flexible solutions [6].

Site-to-site VPNs, while offering strong security through encryption, can introduce higher latency due to encryption overhead and reliance on the public internet. Despite this, they remain a practical choice for smaller deployments or as a backup connectivity option where cost is a major factor [6].

For businesses seeking the best of all worlds, a hybrid approach - combining SD-WAN with MPLS, for instance - can strike a balance between reliability, low latency, flexibility, and cost-efficiency [6]. When evaluating connectivity solutions, it’s wise to prioritise providers that deliver direct, low-latency routes to key data centres and cloud platforms [7]. Opting for dedicated 1:1 connections over shared bandwidth models and choosing ISPs with ample capacity and uncongested infrastructure can also help avoid network bottlenecks [7].

These connectivity solutions lay the groundwork for implementing smart routing strategies, ensuring optimal hybrid cloud performance for businesses across the UK.

AWS Hybrid Cloud & Edge 2023 | AWS On Air ft. Deploy low latency applications on a distributed edge

Smart Routing and Network Design

Getting routing and network design right is essential for ensuring hybrid cloud performance. With Gartner forecasting that by 2026, 75% of organisations will base their digital transformation on cloud platforms [10], the importance of a well-thought-out routing strategy cannot be overstated. Intelligent routing and built-in redundancy are key to keeping latency low and operations smooth.

Better Routing Methods

Centralising DNS can unify on-premises and cloud systems, streamlining service discovery [8]. Tools like AWS Route 53, Azure Private DNS, or Infoblox make this possible, eliminating the confusion caused by fragmented naming systems [8].

Planning ahead is critical. Start with non-overlapping IP ranges and scalable subnets to avoid the hassle and expense of renumbering later on [8].

Software-defined Wide Area Networks (SD-WAN) take routing to the next level by dynamically optimising traffic. They monitor network conditions and adjust routes in real time, with policy-based routing ensuring that resources align with application priorities [9]. For more complex scenarios, you can use route tables, Network Virtual Appliances (NVAs), or SD-WAN to manage traffic dynamically [8].

Building Redundancy into Networks

Redundancy is the backbone of a resilient network, helping to maintain low latency even during component failures. According to the ITIC 2024 Hourly Cost of Downtime Report, outages can cost over £240,000 per hour, with 41% of companies potentially losing between £800,000 and £4 million per hour [12]. To avoid such costly downtime, redundant links and routers are a must, ensuring there are no single points of failure [8]. This involves setting up multiple physical connections between your data centre and cloud providers, each capable of handling the full traffic load if necessary.

Using multiple Availability Zones (AZs) or regions can shield your systems from localised outages [8]. While cloud providers already design their infrastructure with geographic distribution in mind, it’s up to you to architect your applications to take full advantage of these features. Automatic route failovers, enabled by BGP or cloud load balancers, allow traffic to seamlessly switch to backup paths without manual intervention [8]. BGP ensures routing decisions are based on real-time network conditions, while cloud load balancers can detect failed endpoints and redirect traffic in seconds.

When planning for redundancy, your choice of Data Centre Interconnect (DCI) methods should depend on application requirements, security considerations, and budget [10]. For critical applications, the cost of multiple direct connections may be justified. For less sensitive workloads, redundant VPN tunnels might suffice. Additionally, cloud-native transit routing services can simplify both intra-cloud and inter-cloud connectivity where applicable [10].

As Uplatz aptly puts it:

The hybrid cloud isn't a backup plan - it's a strategic advantage. Build it like a first-class system, not a workaround. [8]

This mindset should guide all your routing and redundancy decisions, ensuring your hybrid cloud network meets the performance and reliability needs of modern UK businesses. With these strategies in place, you’ll be well-positioned to incorporate edge computing and caching to further minimise latency.

Edge Computing and Caching Solutions

Building on strong network connectivity and smart routing, edge computing and caching add extra layers to reduce latency. By processing data closer to users, these technologies significantly cut down delays caused by long-distance data transfers.

Edge Computing Benefits for UK Organisations

Edge computing changes the way businesses handle data by processing it at the network's edge instead of relying on far-off cloud data centres. This method can reduce cloud access latency by up to 30% [17], making it especially useful for UK organisations catering to local customers.

By processing requests locally - such as avoiding a data trip from London to Ireland - edge computing removes multiple network hops [14]. This localised approach eliminates bottlenecks and delivers the real-time performance that modern applications demand [15].

Industries like financial services and manufacturing are already benefiting from edge computing, achieving response times as low as 15–20 milliseconds. This speed is critical for tasks like high-frequency trading and real-time monitoring of IoT systems [14].

The potential for growth in this area is immense. The global edge computing market is expected to reach around £200.5 billion by the end of 2024 [14], with mobile users projected to account for over 21% of global edge computing infrastructure by 2028 [14]. UK businesses adopting edge computing stand to gain a competitive edge in this expanding market.

Bruce Kornfeld from the Forbes Technology Council highlights this shift:

Running all applications in the cloud is no longer an option due to cost, latency and uptime constraints. [16]

This reality underscores the need for hybrid solutions that combine the scalability of the cloud with the speed and efficiency of edge computing.

Caching Methods for Better Performance

To complement edge computing, caching strategies play a key role in reducing latency. By storing frequently accessed data in high-speed storage, caching significantly shortens the time needed to respond to repeat requests [21]. Essentially, caching keeps copies of popular content at various points along the data path, avoiding the need to repeatedly fetch the same information from origin servers [22].

Caching can be implemented in two main ways: client-side and server-side. Client-side caching uses HTTP headers to store static assets locally, while server-side caching leverages in-memory or disk solutions to handle frequently accessed data [21][22]. Combining both strategies, known as hybrid caching, allows organisations to tailor their approach to specific needs and performance goals [22].

Real-world examples demonstrate the benefits of caching. For instance, Coupang developed a distributed caching system that improved I/O performance by 40% compared to parallel file systems. Their system efficiently retrieves training data from a central data lake, reduces storage costs, and optimises GPU usage across clusters [19].

For UK organisations, effective caching involves analysing data access patterns and using tiered storage to prioritise high-performance layers for frequently accessed data. Techniques like data compression and deduplication can further reduce storage needs and enhance system efficiency [20].

CDN and Edge Solutions

When selecting a content delivery network (CDN) or edge computing solution, organisations should evaluate factors such as latency reduction, geographic coverage, and compatibility with existing cloud systems. For example, smart cities use edge systems to adjust traffic signals in real time based on street conditions, cutting delays and improving responsiveness [14]. Similarly, edge-enabled video surveillance systems can analyse footage locally, transmitting only flagged clips - like those showing motion or security breaches - resulting in faster alerts and more efficient network usage [14].

Douglas Comer, author of The Cloud Computing Book, explains the balance between edge and cloud computing:

\[Edge computing is\] not going to ever overtake cloud data centres, because there are lots of things that you can't do in an edge data centre... But it is going to be a supplement because you can do things in an edge data centre that you can't do in the cloud. It's all about latency. [16]

This complementary relationship suggests that a well-planned hybrid cloud strategy should use edge computing for latency-sensitive tasks, while relying on cloud infrastructure for large-scale storage and complex data analysis [18].

Next, we’ll explore monitoring practices to ensure these low-latency systems continue to perform at their best.

Monitoring and Performance Tuning

Maintaining optimal performance in a hybrid cloud network requires continuous monitoring to ensure low latency and seamless connectivity. Even the most well-planned networks can encounter bottlenecks over time, leading to degraded user experiences and increased costs. Here’s how you can keep your systems running smoothly with the right tools and strategies.

Network Monitoring Tools

Network monitoring tools are essential for tracking key metrics like traffic patterns, latency, and uptime. These tools help identify issues before they affect users, ensuring a reliable network experience. Choosing tools that provide real-time monitoring, availability tracking, and compatibility with hybrid environments is crucial.

Take Datadog, for example. It has become a go-to solution for organisations managing complex hybrid setups. In 2025, Delivery Hero's Systems Engineer Miguel Mingorance shared:

Datadog CNM gave us immediate visibility into all our Kubernetes cluster traffic. As soon as a new cluster is spun up, we can see if pods communicate as expected and if internal DNS is doing its job. [25]

Similarly, Robert Faria De Oliveira, Infrastructure Operations Manager at Wayfair, highlighted:

With Datadog NDM we now have detailed information from thousands of devices across our large-scale network inside the Datadog platform, helping our NOC teams isolate and respond to issues faster than ever. [25]

For organisations heavily invested in AWS, CloudWatch offers seamless integration with existing services, delivering comprehensive resource visibility and frequent feature updates[26]. SolarWinds is another strong option, offering advanced visualisation and hop-by-hop tracking to pinpoint latency issues[26].

When selecting monitoring tools, focus on hybrid and multi-cloud compatibility. Start with critical infrastructure, establish baseline performance benchmarks, and integrate with SIEM or SOAR platforms to streamline data analysis and response times[24].

Automated Scaling and Configuration

Managing resources manually often falls short in the face of dynamic hybrid cloud requirements. Automated scaling ensures consistent application availability while optimising resources and controlling costs[28]. By automatically adjusting capacity based on real-time demand, systems can adapt without the need for human intervention.

A global e-commerce company demonstrated the power of automated scaling during Black Friday 2024. By scaling public cloud resources during peak hours while keeping critical operations on private infrastructure, they achieved 99.99% uptime and cut costs by 30%[29]. Similarly, healthcare providers have successfully used auto-scaling to manage patient data across hybrid setups, ensuring compliance with privacy regulations while meeting fluctuating demand[29].

Tools like AWS Auto Scaling, Azure Autoscale, and Kubernetes Horizontal Pod Autoscaler are effective options, each tailored to different environments[27]. To maximise efficiency, implement cost controls with budget limits and monitor usage in real time using tools like CloudWatch, Prometheus, or Datadog. Machine learning can also play a role by predicting demand patterns and fine-tuning resource allocation proactively[27]. Regular reviews ensure these automated adjustments remain effective.

Regular Performance Reviews

Periodic performance reviews provide a deeper understanding of long-term trends and uncover opportunities for improvement. These reviews are essential for verifying service level agreements (SLAs) and evaluating the impact of infrastructure updates or changes[30]. High latency doesn’t just slow down applications - it can cause severe system failures in critical scenarios[30].

In industries like financial trading, where programmed trading accounts for 70% of daily volume on the New York Stock Exchange, even milliseconds can make a difference between profit and loss[11][31]. Performance reviews should include traffic management assessments to identify where Quality of Service protocols could help, evaluations of networking equipment to ensure it can handle higher throughput, and application optimisation to reduce processing times[31].

Documenting findings and tracking improvements helps build a clear picture of network trends over time. This historical data is invaluable when planning capacity upgrades or making architectural decisions. Neglecting performance reviews can be costly - companies often waste up to 33% of their cloud budget on inefficiencies, while the average cost of a data breach stands at roughly £3.3 million[23].

Next, we’ll explore how security and compliance shape hybrid cloud network design, particularly for UK organisations navigating GDPR and data protection regulations.

Security and Data Compliance in Hybrid Clouds

Securing hybrid cloud environments is no easy task. A staggering 91% of organisations admit to compromising their security, and 55% experience breaches each year [33]. With attackers exploiting vulnerabilities across private, public, and on-premises systems, the stakes are higher than ever.

Securing Hybrid Cloud Networks

A Zero Trust architecture is proving to be a game-changer in hybrid cloud security. Instead of relying on traditional perimeter defences, this approach continuously verifies all users and devices. This is especially critical given that 82% of data breaches involve human error or employees being tricked into granting unauthorised access, as highlighted in Verizon's 2022 Data Breaches Investigations Report [39].

To bolster security, organisations should:

• Encrypt data both at rest and in transit using secure channels like VPNs or dedicated connections.
• Implement multi-factor authentication (MFA) to strengthen access controls.
• Use network segmentation to isolate sensitive data and critical systems from potential threats [40].
• Leverage AI-powered threat detection to identify and neutralise risks before they escalate.

It’s also essential to clearly define the division of security responsibilities between your organisation and your cloud provider. Regular audits can help pinpoint and address any gaps. Unified security management across all environments ensures better visibility, a cohesive strategy, and faster incident response times [40]. This is particularly important as 58% of organisations report a rise in AI-powered attacks [33].

Chaim Mazal, Chief Security Officer at Gigamon, underscores the importance of adapting to modern threats:

The future of cybersecurity is dynamic and requires constant change and adaptation to protect against today's most complex threats. Network-derived telemetry across physical, virtual, and cloud environments is essential to determine the data moving across the network - including AI models - and mitigate cloud security risks. [33]

These proactive measures are also critical for meeting stringent UK data protection standards.

GDPR and UK Data Protection Compliance

Beyond technical safeguards, compliance with UK data protection laws is a non-negotiable aspect of managing hybrid cloud networks. The regulatory environment is complex: the UK GDPR, which closely mirrors the EU GDPR, applies to any organisation processing the personal data of UK residents. Additionally, the Data Protection Act 2018 introduces specific provisions for areas like national security and law enforcement [36][37][38]. The Privacy and Electronic Communications Regulations (PECR) further regulate electronic communications, creating a comprehensive framework for hybrid cloud compliance [36][38].

The Information Commissioner's Office (ICO) highlights the importance of secure data processing:

A key principle of the UK GDPR is that you process personal data securely by means of 'appropriate technical and organisational measures' – this is the 'security principle'. [35]

To achieve compliance, organisations should:

• Map and inventory personal data: Understanding where personal data resides - whether in private clouds, public clouds, or on-premises systems - is essential for robust protection and adherence to data minimisation principles [38].
• Appoint a Data Protection Officer (DPO): A DPO can provide expert guidance on compliance, manage cross-border data transfers, and ensure proper documentation of lawful bases for processing [36][37][38].
• Manage consent effectively: Implement systems to track and manage opt-in consent across platforms, while ensuring Data Subject Access Requests (DSARs) are handled promptly [37].
• Oversee third-party vendors: Strong vendor management is critical when working with multiple cloud providers. Clear data processing agreements should govern these relationships [38].

Human error remains a significant compliance challenge, with nearly half of organisations struggling in this area [32][36]. Regular training and awareness programmes can reduce these risks. Additionally, consistent audits and continuous monitoring are essential to ensure both technical and procedural measures align with data protection standards [36].

Hokstad Consulting offers tailored hybrid cloud solutions to help UK organisations navigate these challenges effectively.

Hokstad Consulting's Hybrid Cloud Network Services

UK businesses often grapple with the challenge of balancing low latency, cost control, and regulatory compliance. Hokstad Consulting offers a solution by blending technical expertise with a nuanced understanding of the UK market to tackle these issues head-on.

Tailored Hybrid Cloud Solutions

Hokstad Consulting begins by crafting hybrid cloud architectures designed to maximise performance while ensuring compliance. Instead of relying on generic solutions, they assess each client’s infrastructure to create customised setups that balance cost, performance, and security.

Their Cloud Cost Engineering services have made a notable impact, reducing expenses by up to 50% while significantly improving performance, as evidenced by client case studies [41]. With their No Savings, No Fee model, clients only pay when measurable savings are achieved, and fees are capped at a percentage of those savings. This performance-driven model has been particularly appealing to UK organisations, especially those adopting FinOps practices, which have reported cost reductions of up to 60% when fully optimised.

Hokstad’s DevOps Transformation services focus on streamlining CI/CD processes, implementing Infrastructure as Code, and deploying robust monitoring systems across hybrid environments.

Their Strategic Cloud Migration services help businesses rework architectures to harness cloud-native features while preserving the security and control benefits of hybrid setups.

For improved network performance, Hokstad provides advanced caching solutions that use intelligent, multi-layered strategies to maintain low latency and cost efficiency. However, sustaining these gains requires continuous monitoring and oversight.

Ongoing Support and Enhancement

Beyond initial implementation, Hokstad Consulting offers continuous monitoring, optimisation, and strategic guidance tailored to a business's evolving needs. This ensures hybrid cloud networks remain efficient and compliant over time.

Regular security audits keep networks aligned with UK GDPR and other data protection standards, a critical service for organisations handling sensitive data across multiple environments.

Their strategic advisory services help businesses navigate technological advancements and changing regulations. This includes advice on emerging technologies, cost-saving opportunities, and compliance updates relevant to hybrid cloud operations.

Hokstad also provides performance optimisation services, conducting regular reviews of network configurations, routing, and resource allocation. Businesses that carry out thorough audits to identify and remove idle resources often report savings of up to 65% on cloud expenses, underscoring the importance of ongoing oversight.

The firm’s retainer-based support model offers flexibility, enabling organisations to access expertise as needed without committing to rigid, long-term contracts. This is especially beneficial for UK businesses with fluctuating requirements that demand cost efficiency and adaptability to regulations.

Hokstad’s AI strategy and automation services further enhance hybrid cloud operations. By integrating artificial intelligence into DevOps workflows and broader business processes, they can proactively address performance issues before they escalate. This ensures the low-latency performance crucial for maintaining a competitive edge in today’s hybrid cloud environments.

Key Points and Next Steps

To achieve low latency, businesses need to balance technical precision with regulatory compliance. In the UK, companies that adopt direct connections can see latency reduced by 44% compared to public internet routes, along with a 60% decrease in performance variability [42]. Considering that unplanned outages cost an average of £10,300 per minute [42], building a resilient network is more than a technical goal - it’s a financial safeguard. These figures highlight the importance of a flexible and well-thought-out network strategy.

Low latency is critical to all size of organisations because it directly influences the responsiveness and performance of systems, applications and networks. – Securus Communications [1]

One effective approach is to establish direct connections using services like AWS Direct Connect or Azure ExpressRoute [43]. For latency-sensitive applications, placing them closer to edge or private cloud infrastructure can significantly improve performance [34]. These steps align with earlier discussions on direct connectivity and optimised routing.

But network optimisation goes beyond just connectivity. Adjustments such as tuning TCP window sizes, refining congestion control, and optimising packet sizes can lead to measurable performance gains [43]. Adding redundancy and failover mechanisms ensures stability, especially during peak usage periods [43].

For UK businesses, data residency must comply with GDPR while maintaining performance [13]. As noted in our GDPR review, safeguarding data is just as important as minimising latency. Frequently accessed data should be stored closer to compute resources, supported by caching strategies that adhere to cross-border compliance requirements.

Continuous monitoring is essential for maintaining low latency. Advanced network monitoring tools allow organisations to identify and resolve latency issues before they disrupt operations [1]. Setting baseline performance metrics and using automated scaling configurations can help businesses adapt to fluctuating demand patterns.

To move forward, organisations should focus on key actions: auditing latency bottlenecks, orchestrating workloads across clouds, and adopting Infrastructure as Code [13][34]. These audits can reveal opportunities to improve efficiency and cut costs.

Hybrid cloud networking success isn’t achieved through a single implementation. Regular reviews and strategic planning are crucial to sustaining optimal performance as business needs evolve.

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